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Energy Bill Relief Scheme - Next Phase

Amanda Byrne

17th January 2023

Businesses still need help!

The Energy Bill Relief Scheme (EBRS), announced in September 2022, is set to end in March 2023. The Government has announced another 12 months of energy bill support for business, running from April 2023 - March 2024. However, they have confirmed that businesses will be receive lower levels of discount.

Energy Bill Relief Scheme recap

The Energy Bill Relief Scheme (EBRS) was introduced to allow eligible customers to receive a discount on their gas and electricity unit prices. This relief was calculated by comparing the estimated wholesale commodity cost portion of the unit price that would be paid this winter against a ‘Government supported price’. The Government supported price was set at 21.1p/kWh for electricity and 7.5p/kWh for gas to covers consumption from 1 October 2022 to 31 March 2023.

The maximum discount that a business could receive during this period was 55.6p/kWh for electricity, and 9.1p/kWh for gas.

Note that this support refers only to the pure commodity/energy element of bills, and doesn’t affect the charging of any non-commodity costs such as green taxes, distribution/transmission costs, or supplier margin etc.

Energy Bill Relief Scheme - post March 2023

Firstly, businesses who qualify as ETII (Energy or Trade Intensive Industries), based on their SIC code, will receive a discount that is larger than the standard amount from April 2023 onwards. Even so, they will receive less support than during Winter 2022.

The below table illustrates the extent of this relief between Oct 22-Mar 23 that was available to all businesses, and also for the period Apr 23-Mar 24 for all businesses and ETII businesses.

electricity relief

gas relief

The below charts provide a visual indication of the extent of this available support, for each commodity and for UK-wide businesses and ETII businesses.

UK-wide Electricity Support

elec

etii elec

gas

etii gas

 If you need help in understanding how the scheme will affect your business, or if you have an imminent contract renewal, please get in touch.

We are helping our clients successfully navigate this turbulent landscape by purchasing better, using less and managing more!

We have helped over 70 businesses in the last few months secure and manage their energy contracts giving invaluable peace of mind and pocket!

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